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Chapter-1: The Role of Business Research

This document defines and discusses business research. It notes that business research applies the scientific method to investigate business phenomena. There are two main types: applied research addresses specific business decisions, while basic research expands general knowledge without addressing a specific problem. The scientific method uses evidence and knowledge to reach objective conclusions. Business research is valuable for managerial decision making around problems, opportunities, selecting and evaluating courses of action. It should be conducted when it can improve decisions in a cost-effective manner. Modern business research benefits from globalization and communication technologies.

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Anita Panchal
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172 views

Chapter-1: The Role of Business Research

This document defines and discusses business research. It notes that business research applies the scientific method to investigate business phenomena. There are two main types: applied research addresses specific business decisions, while basic research expands general knowledge without addressing a specific problem. The scientific method uses evidence and knowledge to reach objective conclusions. Business research is valuable for managerial decision making around problems, opportunities, selecting and evaluating courses of action. It should be conducted when it can improve decisions in a cost-effective manner. Modern business research benefits from globalization and communication technologies.

Uploaded by

Anita Panchal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter-1:

The role of Business Research


Business Research Defined
• Business research is the application of the scientific method in searching for the truth about
business phenomena.

• The process includes:

 idea and theory development

 problem definition

 searching for and collecting information

 analyzing data

 communicating the findings and their implications

• This definition suggests that business research information is:

 not intuitive or haphazardly gathered

 accurate and objective

 relevant to all aspects of the business

 limited by one’s definition of business

• Not-for-profit organizations and governmental agencies can use research in much the same was as
managers in for-profit organizations.

Applied and Basic Business Research


• Applied business research
 conducted to address a specific business decision for a specific firm or organization.

 Example:

 Should McDonald’s add Italian pasta dinners to its menu?

 Which health insurance plan should a business provide for its employees?

• Basic business research (also called pure research)


 conducted without a specific decision in mind that usually does not address the needs of a
specific organization.

 Attempts to expand the limits of knowledge in general.

 Not aimed at solving a pragmatic problem.

 Example:

 Do consumers experience cognitive dissonance in low-involvement situations?

 Does employee tenure with a company influence productivity?

The Scientific Method


Scientific Method

 The way researchers go about using knowledge and evidence to reach objective conclusions
about the real world.

 The analysis and interpretation of empirical evidence (facts from observation or


experimentation) to confirm or disprove prior conceptions

EXHIBIT 1.1 A Summary of the Scientific Method


Managerial Value of Business Research
There are only a few business orientations:

 Product-oriented

 Production-oriented

 Marketing-oriented

EXHIBIT 1.2 Business Orientations

Managerial Value of Business Research


The decision-making process associated with the development and implementation of a
business strategy involves four interrelated stages:

1. Identifying problems and opportunities

2. Diagnosing and assessing problems or opportunities

3. Selecting and implementing a course of action

4. Evaluating the course of action


Evaluating the Course of Actions
• Evaluation Research

 The formal, objective measurement and appraisal of the extent a given activity,
project, or program has achieved its objectives.

• Performance Monitoring Research

 Research that regularly, sometimes routinely, provides feedback for evaluation and
control of business activity.

When is Business Research Needed?


• The determination of the need for research centers on:

1. Time constraints

2. The availability of data

3. The nature of the decision to be made

4. Benefits versus costs (the value of the research information in relation to costs)

 Will the payoff or rate of return be worth the investment?

 Will the information improve the quality of the managerial decision enough to
warrant the expenditure?

 Is the expenditure the best use of the available funds?

EXHIBIT 1.3 Determining When to Conduct Business Research


Business Research in the 21st Century
• Communication Technologies

 Always “connected”—time, place, and distance are irrelevant.

 Decreases in information acquisition, storage, access, and transmission costs.

• Global Business Research

 Business research is increasingly global.

 Must understand the nature of particular markets.

 Cross-validation

 Verify that the empirical findings from one culture also exist and behave similarly
in another culture.

What Business Research Is Not?


• Business Research isn’t information gathering:

 Gathering information from resources such books or magazines isn’t business research.

 No contribution to new knowledge.

• Business Research isn’t the transportation of facts:

 Merely transporting facts from one resource to another doesn’t constitute business
research.

 No contribution to new knowledge although this might make existing knowledge more
accessible.

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